Following in the footsteps of health insurers that offer Apple Watches to promote daily walking habits, Beam Dental, an AI-powered dental benefits provider, uses this creative approach with dental insurance. With the company’s connected toothbrush and algorithmic underwriting, employers can save on premiums at policy renewal based on how well employees brush.
This strategy isn’t just good for members’ dental health. Cumulative risk prevention habits — as simple as brushing your teeth twice a day – can result in savings for members, employers, and insurers.
Here’s how connected devices can make health and dental insurance work better for everyone.
Promote and track everyday healthy behaviors
Every year patients and insurers spend millions of dollars for treatment of serious illnesses. Not all diseases are preventable by daily behaviors, of course, but many are. That raises two key strategic questions for insurers: which lifestyle habits improve health outcomes, and how can an insurer play a role in encouraging them?
Dental health offers a prime example of the power of daily behaviors in preventing most major dental problems. Research has shown that electric toothbrushes are more effective than manual toothbrushes in controlling plaque, preventing gingivitis, and improving overall oral hygiene. Electric toothbrushes also give insurers the opportunity to track good brushing habits.
Apple Watches and FitBits provided by health and life insurers work the same way: they encourage users to hit daily steps counts or gym sessions. In other words, connected devices ensure users get the full benefits of their behaviors that translate into long-term risk prevention.
Create more engaging provider and employer touchpoints
Connected devices aren’t only effective in incentivizing behavioral change because of their health benefits. They’re also fun to use.
Typically, members only engage with their benefits during open enrollment. As many as 44% percent of customers have had no interaction with their insurers during the last 18 months.
Plus, devices add gamification. It’s satisfying to log a daily steps count or finish your daily brushing and a connected app congratulates you. These small touchpoints boost engagement and encourage members to continue the behaviors that are good for their health and their wallets.
Better data enables smarter insurance products
Insurance underwriting tends to be an educated guess based on imprecise indicators of a person’s risk profile. That can result in spending excess insurance dollars on plans for people who don’t need treatments and claims for people who would have benefited from better coverage.
Connected devices give insurance providers more data about behaviors related to health outcomes. Insurers can then leverage that data to offer fairer rates based on healthy habits, which saves insurers, employers, and members money.
Advancements in computing power and data analysis tools enable better and more efficient underwriting. Beam Dental, for example, leverages artificial intelligence to mimic the risk decisions typically made by underwriters and then automatically applies that logic to offer rates on tens of thousands of policies per year. By analyzing emerging claims experience with policyholder data, the company is able to achieve increased accuracy in dental plan pricing and suitability.
Better data and underwriting also positions insurers to be a source of quality assurance in medical treatment. With access to a member’s risk profile and medical history, an insurer can identify overtreatment and unnecessary procedures and caution members.
Reward employee’s healthy choices with cost savings
Connected devices are an exciting opportunity for both insurers and employers to be better advocates for their employees’ health.
Integrating connected devices into insurance plans is a triple win for insurers, employers, and members: it improves health outcomes for members, it boosts member engagement with employers and insurers, and it promotes behaviors that save all three parties money in the long term.
Source: Benefit News
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